INCOME TAXES

12 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 5 - INCOME TAX

The recognition of income tax expense related to uncertain tax provisions is determined under the provisions of FASB ASC-740. The Company had no unrecognized tax benefits as of the date of adoption. The income tax positions taken for open years are appropriately stated and supported for all open years. The Company’s federal tax returns for the fiscal years ended 2009, 2010, and 2011 are subject to examination by the IRS taxing authority.

The sources of deferred tax assets and liability at June 30, 2012 and 2011 are as follows:

	2012			2011
Deferred tax assets:
Inventories	$	588		$	472
Trade receivables		5,135			5,230
Contribution carryover		1,554			1,198
Deferred income		5,630			6,071
Net operating loss carryover		50,507			-
Total deferred tax assets		63,414			12,971
Deferred tax liability:
Property and equipment		(105,635	)		(106,290	)
NET DEFERRED TAX LIABILITY	$	(42,221	)	$	(93,319	)

The net deferred tax assets (liability) are presented in the accompanying June 30, 2012 and 2011 balance sheets as follows:

	2012			2011
Current deferred tax asset	$	7,277		$	6,900
Noncurrent deferred tax liability		(49,498	)		(100,219	)
NET DEFERRED TAX LIABILITY	$	(42,221	)	$	(93,319	)

The provision (credit) for income taxes, for the years ended June 30, 2012 and 2011, consists of the following:

	2012			2011
Current tax expense	$	30		$	107
Deferred tax expense		(51,098	)		5,294
	$	(51,068	)	$	5,401

The income tax provision differs from the amount of income tax determined by applying the statutory federal income tax rate to pretax income for the years ended June 30, 2012 and 2011 due to the following:

	2012			2011
Computed “expected” tax (credit)	$	(51,665	)	$	5,162
Increase (decrease) in income taxes (benefits)
resulting from:
State income taxes, net of federal benefit		-			603
Other		597			(364	)
	$	(51,068	)	$	5,401

The Company has unused contributions of $4,571 to carryforward that will expire for tax years ranging from 2012 through 2016.

As of June 30, 2012, the Company had a net operating loss carryforward of approximately $148,550 available to use over the next twenty years.